1. The company is dependent on a few customers for a major part of its revenues. Further the company
does not enter into long-term arrangements with its customers and any failure to continue its existing arrangements could adversely affect the company's business and results of operations.
2. The company does not have long term agreements with suppliers for its raw materials and an increase in the cost of or a shortfall in the availability of such raw materials could have an adverse effect on its business, results of operations and financial condition.
3. Under-utilization of its production capacities could have an adverse effect on its business, future prospects and future financial performance.
4. The majority of its operative income is derived from the domestic market and any adverse developments in this market could adversely affect its business.
5. The company does not enter into long-term arrangements with its distributors and any failure to continue its existing arrangements could negatively affect its business and results of operations.
6. The Company, its Promoters and its Directors are party to certain legal proceedings. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.
7. Its contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.
8. The company may not be able to identify or effectively respond to evolving preferences, expectations or trends in a timely manner and a failure to derive the desired benefits from its product development efforts may impact its competitiveness and profitability.
9. Its Manufacturing Facility is located in vapi, Gujarat and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in Gujarat or any disruption in production at, or shutdown of, its manufacturing unit could have material adverse effect on its business and financial condition.
10. The company has not received consents and information pertaining to certain Promoter Group members which are required to be disclose in relation to the promoter Group in the Draft Red Herring Prospectus. Therefore, the disclosure made in the DRHP are limited to the information available in the public domain.